August 5, 2024
As highlighted in our first article, the advertising industry faces several challenges, ranging from mass behavior modification and data vulnerability to misalignment of interests between sponsors and media, resulting in low-quality or even scammy advertisements.
However, a key insight from our first article was that each technological revolution has led to the emergence of new monetization mechanisms. For example, radio enabled mass audience targeting, television introduced visuals that increased consumer engagement, the internet sparked the rise of the pay-per-click industry, and social media enabled the targeting of advertisements through programmatic ads. The natural evolution from Web2 to Web3 involves blockchain technology, which enables decentralization, giving more control and choice to communities, facilitating direct payments, and, notably, allowing digital ownership.
Nevertheless, we have not (yet) found a new monetization mechanism emerging from this new technological evolution.
While developing the SiBorg app, we encountered challenges related to in-app monetization, a common issue among many companies, including those rooted in Web2. For newly launched applications with relatively low user bases, it is particularly challenging to generate revenue from ads. This creates a loop where funds from advertisements are necessary for marketing campaigns, but attracting advertisers requires significant user engagement and fulfilling various KPIs—yet, to attract users, funds are again necessary.
We explored different options like donations and premium subscriptions but were not convinced by adopting just one of them, as each approach brings its own set of challenges.
That's when we began developing SiBorg Ads, a blockchain-based solution.
By introducing digital ownership over traditional advertising spaces, individuals can now own a segment of a website or a DApp dedicated to advertising. This ownership allows investors to contribute to the future visibility of a media platform. Ad spaces carry two types of value:
Now, as sponsors also become investors by owning digital parcels of the media, their goal is to maximize visibility for either sponsorship purposes or to sell the ad space at a higher price, enhancing the quality of the ads.
In this first version of SiBorg Ads, users' data are not utilized, ensuring 100% privacy. However, in future versions, we may offer the option to use off-chain and on-chain data to deliver a more targeted experience, but only if users opt in.
With SiBorg Ads, media and DApps receive upfront payments when ad spaces are purchased. Additionally, the media also earn royalties from the secondary market.
SiBorg Ads reduce intermediaries, ensuring a higher return on investment for sponsors with only three stakeholders involved: the sponsor (which can be any user or brand seeking visibility), the SiBorg Ads marketplace, and the SiBorg app where the ad is displayed.
Furthermore, the media maintain control over what is published, preventing scammy ads. Meanwhile, sponsors can be certain of where and when their ads will be deployed.
In our upcoming article, we will delve deeper into how SiBorg Ads works, exploring the user flow and more. Stay tuned for major announcements.
First Article: Exploring the Evolution and Current Challenges of the Advertising Industry
